Applying for Quick Business Loans: 5 Things You Need to Know
The business landscape is full of terms that sound standardized and even scientific, but there are also terms that are named subjectively. There’s no better example of this subjective naming than when the spotlight shines on “quick business loans.”
Here’s the problem: what most prospective borrowers consider quick is NOT what most lenders consider quick. Fortunately, there are ways to avoid playing the waiting game and getting what you consider to be a quick business loan when you need it.
5 Things You Need to Know About Quick Business Loans
- Insist On a Timeframe: Some lenders have no problem offering fuzzy, abstract guesstimates about how long they’ll take to assess a loan application and render a decision. Don’t settle for this. Instead, insist on a clear timeframe so that you can position your business accordingly — which may include looking at another lender whose definition of “quick business loans” is more aligned with yours.
- Secured Loans Take Longer than Unsecured Loans: Applications for secured loans (i.e. those that require collateral) will invariably take longer to assess than those for unsecured loans, because the collateral valuation process is time consuming. Remember: all bank loans are secured loans, which means waiting several months for a decision is typical.
- Perhaps a Quick Business Loan Isn’t Ideal, But a Line of Credit is the Right Choice: If you don’t have a current or imminent need for more funds, but you want to have instant access to additional working capital, then you may not need a quick business loan in the first place. Instead, it may be wiser to obtain a business line of credit. With a line of credit, interest is charged only on the amount borrowed (not the total amount available), and if the line is revolving then you can continue using it over and over.
- You May Need a Merchant Cash Advance Instead: If the majority of your transactions are via credit card or debit card, then it may be beneficial to apply for a merchant cash advance instead of a business loan or line of credit (as described above). Technically, a merchant cash advance isn’t a loan. It’s an advance on future credit/debit card sales. Therefore, a small percentage of daily sales is automatically paid to the lender until the advance is fully repaid.
- You’re 24 Hours or Less From Getting a Quick Business Loan: How do we know? Because 24 hours or less is how long we take at National Business Capital to assess business loan applications and render a decision. Since we approve about 90% of applications — compared to about 15% at big banks — there’s more than a good chance that by this time tomorrow (if not sooner), you’ll be on your way to getting the financing you need to keep your business strong and successful for years to come!
Applying for Quick Business Loans
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